Assume that the interest rate on a federally insured deposit declines from 15 percent per annum to 10 percent. If an individual holding a U.S. Treasury bill worth $2,500 plans to sell it after this drop in interest rate, he would realize (approximately) a:
a. capital gain worth $99.
b. capital loss worth $100.
c. capital gain worth $100.
d. capital loss worth $99.
A
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Theory suggests that minimum-wage laws create ________ unemployment, especially among younger workers
A) frictional B) cyclical C) structural D) under-reported
The rate of interest that equates saving and investment at full employment is called the
A) real rate. B) nominal rate. C) natural rate. D) discount rate.
What are the three noteworthy labor market trends that Americans have experienced for about two decades?
The monopolist's marginal revenue curve is downward sloping because:
a. the monopolist must lower its price in order to sell more. b. it operates in the range where ATC is downward sloping. c. it operates in the range where MC is downward sloping. d. its total revenue declines as it sells more.